The RIO Inventory Configuration screen requires you to specify the Default Warehouse Location. There are 3 options:
This configuration is used in an Opportunity. When a Product is added to an Opportunity, the quantity is assigned using this configuration option to decide which warehouse to select the Inventory from. It can be changed or overwritten at each Opportunity level if required.
The actual physical location (Warehouse Location) of each Product should be used to make the decision on selecting the Default Warehouse Location.
For example, if all Products are located in all Warehouse Locations then you would probably want your inventory to be assigned from the Warehouse that is closest to the location for delivery – so is this information provided on the Opportunity, or on the Account? If certain products are only located in certain warehouses, then the Product might be what dictates the Default Warehouse Location.